credit control

credit control

the control exercised by a firm over its TRADE DEBTORS to ensure that customers pay their debts on time and to minimize the risk of BAD DEBTS. Credit control involves: assessing the creditworthiness of new and established customers to determine borrowing limits and terms; encouraging prompt payment by offering cash discounts and monitoring and recording payments due; the recovering of bad debts. Effective credit control minimizes the funds which a firm has tied up in debtors, so improving profitability and LIQUIDITY. See FACTORING, DEBTORS RATIO, WORKING CAPITAL RATIO.

It recommends that businesses take a more proactive stance in order to limit the number and impact of late payments and has developed a list of initiatives that business owners can implement in order to address this issue, such as agreeing realistic payment terms upfront; making it easy to be paid; credit check new customers; have a clear procedure for credit control and don't be afraid to take action.

The expense and hassle of chasing outstanding invoices is taken on by the factoring provider which undertakes the credit control and collections function, enabling owners and managers to eliminate the need to set up a credit control function and eradicating the troublesome issue of late payment, allowing them to get on with what they do best - driving their business forward.

Now his working week consists of offering a range of finance, venture capital and business advice plus support services such as bookkeeping, finance, insurance, recruitment, training, credit control and payroll.

Our customers value connectivity and ease of payment and at Zain we have used the most modern technology to ensure that Zain Bahrain customers can track and pay their telecoms bills easily," said Younis Ahmed, Zain Bahrain's credit control and collection manager.

But the service is now available to subscribers who will be able to access information on more than 6m constantly updated records of businesses throughout the country looking at sales, credit control, collection, risk and compliance.

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